Tariffs at Will, a Code of Conduct and abjuring the middle path!

 Some more reasings and reaction on recirporcal tariffs from around the (online) world:

1. Shiro Armstrong and Tom Westland in the REITI websiteargue provocatively that reciprocal tariffs should be met with realiatory tariffs which could be disastrous to world trade. Instead, action on amending intellectual property regimes domestically to make them more aligned to public purpose than private interest should be undertaken.

2. The impact of high tariffs was analysed here in the context of Japan and Jinji Naoto concluded that the impact would not be much for the imports into the US as there would be trade diversion from other countries and the consumers may be the worst hot after all.

3. Alan. Wm Wolff in his inimitable way alludes to what other trading partners do in the face of the changed reality of the challenge to the rules based system by stating that if the WTO needs to survive and be relevant the WTO members should come with a World Trading System (WTS) Code of Conduct System 2025 which has signatories agree to everything from abiding by the rule based trading system to ending the non-participant veto in case of plurilaterals that achieve a critical mass. I found his statement "Tariffs at will is the opposite of tariffs contractually bound." particularly relevant in the context of WTO rules.

4. The impact on India of the tariff threats is analysed here by Harsh V Pant who argues that India would need to rethink on its feet and avoid the "middle path" and take strategic, innovative decisions quickly. So much for wanting to tread the middle path! But wait, isn't acting startegically to protect national interest also treading the middle path?!

5. I have been thinking of this lately - what is the reaction on China to the new tariff proposals. This piece by Antara Ghoshal Singh is a summary yet exhaustive account of the reaction in China to the new paradigm - the key question there is who will bear the brunt of tariffs - the US consumer and economy towards inflation or Chinese manfuacturing companies profit margins.

6. An option that could achieve the outcome of reciprocal tariffs in a better way is entering into trade agreements that would reduce tariffs and barriers as argued by Colin Grabow here.